Question: 2 . Consider the mechanism design example discussed in class in which there are two risk - neutral bidders with independent private values uniformly distributed
Consider the mechanism design example discussed in class in which there are two riskneutral bidders with independent private values uniformly distributed on and respectively. The riskneutral sellers value from retaining the object is zero. a Derive the expected payment functions eiti for i Explain. b Can you think of an auction whose BNE implements ie finds the same e and p functions as the optimal direct incentive compatible mechanism? Explain.
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